National Policies and Highlights

01 The National Energy Administration has clarified the top ten priorities for energy work in 2025! (December 15) On December 15, the 2025 National Energy Work Conference was held in Beijing. Wang Hongzhi, Party Secretary and Director of the National Energy Administration, made a work report. Wang Hongzhi, Party Secretary and Director of the National Energy Administration, said that next year and the "Tenth Five-Year Plan" period are critical periods for accelerating the construction of a new energy system, promoting high-quality development of energy, and high-level security. The energy industry should benchmark the major decisions and arrangements of the Third Plenary Session of the 20th Central Committee of the Communist Party of China, deeply analyze the new situation and new requirements of energy development and reform, and strive to break through the shortcomings of institutions and mechanisms that restrict high-quality development. Further stimulate and enhance development vitality. We must make solid preparations to deal with various risks and challenges, we must accelerate the development of new quality productive forces, we must more firmly promote comprehensive and deepening reform, and we must focus on improving the efficiency and level of supervision. The meeting clarified ten key areas for energy work in 2025. First, we must deeply study and implement the spirit of General Secretary Xi Jinping's important expositions and important instructions, and implement the new strategy of energy security with higher standards. Accelerate the planning and construction of a new energy system, adhere to the guidance of scientific and technological innovation, the driving force of institutional reform, the premise of abundant safety, and the foundation of economic behavior. Gradually establish a new energy system with non-fossil energy as the main supply body, fossil energy as the basic living standard guarantee, new power system as the key support, and green wisdom and conservation as the energy consumption orientation. Promote the implementation of the new strategy for energy security and achieve greater results. The second is to thoroughly implement the spirit of the Third Plenary Session of the 20th Central Committee of the Communist Party of China, and promote energy reform and the construction of the rule of law in depth. Accelerate the construction of institutions and mechanisms to adapt to the new energy system, initially build a unified national electricity market, optimize the operation and scheduling mechanism of oil and gas pipeline networks, and promote the independent operation of natural monopoly links and the market-oriented reform of competitive links. Take the implementation of the "Energy Law" as an opportunity to consolidate the foundation of energy rule of law. The third is to better play a guiding role and coordinate the preparation and implementation of energy plans. Strengthen the dynamic monitoring of planning implementation, and strive for the successful conclusion of the "14th Five-Year" energy plan. Scientifically plan and formulate the "15th Five-Year" energy plan, adhere to the concept of "overall one game of chess" in the national energy plan, and coordinate the preparation of provincial energy plans. Fourth, Strengthen bottom-line thinking and strategic determination, fully complete the task of energy supply guarantee, give full play to the role of coal and coal power basic living standards guarantee, promote oil and gas storage and production, strengthen energy reserve capacity building, and continue to promote the construction of monitoring and early warning system. Fifth, adhere to green and low-carbon transformation, and continue to promote the optimization and adjustment of energy structure. Vigorously promote the development and utilization of wind power and photovoltaics, coordinate hydropower development and ecological protection, actively develop nuclear power in a safe and orderly manner, and coordinate the construction of new power systems. Sixth, accelerate the promotion of self-reliance in science and technology, and vigorously develop new quality productivity in the energy field. Strengthen the management of major national science and technology projects, continue to promote the research and demonstration of major technical equipment, and strengthen scientific and technological innovation and standardized management. Seventh, always adhere to the problem-oriented Deepen the comprehensive supervision of the power sector, promote the supervision of special projects in the energy sector, so that supervision is truly "tusk with thorns", ensure that the national energy policy is effective, and improve the level of people's livelihood security. Eighth, firmly establish the concept of safe development, and make every effort to do a good job in power safety supervision. Improve the power safety governance system, organize the supervision of special projects for power safety, and do a good job in power cyber security. Ninth, consolidate and deepen international cooperation in energy, and accelerate the construction of a new pattern of three-dimensional and diverse cooperation. Enhance overseas energy resource security capabilities, strengthen energy cooperation risk prevention, strengthen green energy cooperation, and actively participate in global energy governance. Tenth, strengthen the party's overall leadership over energy work, and persevere in promoting comprehensive and strict governance of the party.

02 The two detailed rules in the south have been greatly adjusted! New wind and solar energy storage compensation, independent energy storage peak regulation/primary frequency regulation/AGC compensation has decreased! (December 18) On December 18, the Southern Energy Regulatory Bureau issued the "Two Detailed Rules" in the southern region. The main revised provisions, among which independent energy storage and photovoltaic energy storage can participate in AGC frequency regulation, peak regulation and other auxiliary service market compensation, have been adjusted, and the document will be implemented from January 1, 2025. "Southern Region New Energy Storage Grid-connected Operation and Auxiliary Service Management Implementation Rules", the charging power compensation standard for independent energy storage power stations participating in peak shaving is adjusted from the previous 8 × R5 (yuan/MWh) to 12 × R5 (yuan/MWh), but the premise is limited: when 10% of coal-fired power units in the province (region) receive deep peak shaving compensation according to the system's peak shaving needs. At the same time, the deep peak shaving compensation standard R5 is changed to: Guangdong, Guangxi, Guizhou, Hainan and Yunnan are respectively the local affordable new energy project feed-in tariff/12. According to this calculation, the charging compensation standard for independent energy storage is 0.453 yuan/kWh in Guangdong, 0.4207 yuan/kWh in Guangxi, 0.3358 yuan/kWh in Yunnan, 0.3515 yuan/kWh in Guizhou, and 0.4298 yuan/kWh in Hainan. Compared with the 2022 version, it has dropped significantly. In addition, the "Implementation Rules for Grid-connected Operation and Auxiliary Service Management of Wind Power in the Southern Region" and "Implementation Rules for Grid-connected Operation and Auxiliary Service Management of Photovoltaic Power Generation in the Southern Region" propose for the first time that new energy distribution and energy storage charging should be compensated. If photovoltaic power stations and wind farms are equipped with energy storage on the site, the charging capacity that meets the average daily cycle number of equivalent full power is greater than 1 shall be compensated according to the standard of 2 × R5 (yuan/MWh). In addition, in the "Implementation Rules for the Administration of Electric Power Auxiliary Services in the Southern Region", the compensation standards for primary frequency regulation, AGC frequency regulation, deep peak regulation, and start and stop peak regulation have been adjusted. Among them, the compensation for primary frequency regulation and AGC frequency regulation has dropped significantly. The AGC service adjustment capacity compensation standard R2 was previously 12, 5, 5, 10, and 10 yuan/MWh in Guangdong, Guangxi, Guizhou, Hainan, and Yunnan, respectively, adjusted to a unified 3.56 yuan/MWh. The compensation standard R1 for the excess integrated electricity of primary frequency regulation has been adjusted from the unified 150,000 yuan/MWh in the first five provinces to: Guangdong, Guangxi, Guizhou, and Hainan 50,000 yuan/MWh, and Yunnan 30,000 yuan/MWh. Start and stop peak shaving compensation standard R4: the previous five provinces were unified as 25,000 yuan/10,000 kilowatts, after adjustment, Hainan was 35,000 yuan/10,000 kilowatts, and the remaining four provinces were still 25,000 yuan/10,000 kilowatts.

Local Policies and Highlights

01 The General Office of the People's Government of Shandong Province issued the "Several Measures on Improving and Improving the Mechanism of the New Energy Consumption System to Promote the High-Quality Development of Energy" (December 19) On December 19, the General Office of the People's Government of Shandong Province issued the "Notice on Improving and Improving the Mechanism of the New Energy Consumption System to Promote the High-quality Development of Energy" (referred to as "Several Measures"). Regarding the construction of a new regulation system part, the "Several Measures" proposed a number of measures, involving energy storage, pumped hydro storage, compressed air energy storage and other long-term energy storage, distributed energy storage and other aspects. 1. Strengthen the basic regulation status of coal and electricity. Improve the peaking capacity of large-scale clean and efficient coal-fired power units, and the minimum technical output of new pure condensing and pumped condensing coal-fired power units should not exceed 20% and 30% of the rated load. Speed up the flexible transformation of existing coal-fired power units, and convert the energy storage capacity according to the standard of 10% × 8 hours of new deep adjustment capacity after the transformation, as the supporting energy storage of new energy projects. Encourage coal-fired power units to increase the deep peaking capacity through the distribution and construction of electric boiler heat storage facilities, molten salt heat storage and other facilities. If the relevant facilities are built within the metered export of power generation enterprises, their electricity consumption shall be managed according to the power consumption of the plant but not counted as the power consumption in statistics. 2. Speed up the development of pumped storage power stations. Encourage the diversification of pumped storage investment entities, and support enterprises with development qualifications to participate in project In load centers, new energy bases, nuclear power bases, etc., carry out "source network charge storage" and "wind and solar nuclear storage" pilots to create a multi-scenario development model. Support pumped storage power plants to participate in the electricity cash market, and the pumped electricity price and on-grid electricity price are settled according to the electricity cash market price and rules. 3. Accelerate the construction of electrochemical energy storage projects. Encourage the development of centralized electrochemical energy storage, build energy storage capacity leasing trading platforms, and new energy projects leasing centralized energy storage will be given priority to be included in the annual market-connected project list. In principle, the single scale of energy storage projects should not be less than 30,000 kilowatts, and encourage joint participation in electricity market transactions with new energy projects. Improve the rules for energy storage to participate in the electricity market, and establish a "integrated multi-use, time-sharing and reuse" trading model. 4. Support the development of long-term energy storage such as compressed air. Encourage the construction of long-term energy storage projects such as compressed air, renewable energy hydrogen production, and flow batteries. Those who meet the conditions will be given priority to be included in the province's new energy storage project library, and priority will be given to access the power grid after completion. Support long-term energy storage projects to participate in electricity cash market transactions, and warehousing projects will convert energy storage capacity according to 2 times the capacity. 5. Promote distributed energy storage construction. Carry out distributed energy storage construction in areas with insufficient capacity for new energy consumption, support access to corresponding distribution networks, aggregate and participate in power market transactions in the way of "cloud energy storage", enjoy the capacity compensation policy of centralized energy storage demonstration projects, and can implement new distributed new energy storage capacity leasing in the county (city, district) where they are located.  

02 The Development and Reform Commission of Henan Province issued a notice on the conversion of new energy distribution and construction energy storage into independent energy storage. (December 18) The notice pointed out that the distribution and construction energy storage that has been put into operation or under construction can be converted into independent energy storage as required; the distribution and construction energy storage that has received provincial financial incentive funds, and the distribution and construction energy storage that involves multi-energy complementarity and the integration of source, network, load and storage cannot be converted into independent energy storage for the time being. After the new energy distribution and construction energy storage is converted into independent energy storage, it enjoys the price policy of independent energy storage projects, and the charging and discharging costs are uniformly settled by power grid enterprises to participate in the power auxiliary service market. The original new energy projects should implement their own distribution and storage responsibilities through leasing. The leased capacity is not less than the new energy development plan requires their configuration energy storage capacity. If the requirements are not met, their distribution and construction energy storage will not be converted to independent energy storage. For distribution and construction energy storage that has not started construction since the date of issuance of the notice, in principle, the method of leasing independent energy storage or directly carrying out construction in accordance with the independent energy storage model should be adopted. Power grid enterprises should simplify the process and speed up the procedures related to distribution and construction to independent projects in accordance with the principle of "as much as possible".

03 Hebei Southern Power Grid 2025 Medium and Long-term Trading Work Plan Released (December 15) Hebei Provincial Development and Reform Commission issued a notice on issuing the "Hebei Southern Power Grid 2025 Medium and Long-term Trading Work Plan". The scale of direct power transactions in 2025 is tentatively set at 100 billion kWh (adjusted in a timely manner according to changes in demand). The notice makes detailed provisions for independent energy storage to participate in medium and long-term transactions, and makes it clear that independent energy storage can participate in electric energy transactions and capacity leasing transactions. In terms of capacity transactions, the work plan formulates the upper and lower limits of independent energy storage transactions when participating in capacity leasing transactions. The upper and lower limits are tentatively set at 400 and 200 yuan/kW · year in 2025.  

04 Zhejiang Yongkang issued the "Guidelines for the Construction of New Energy Projects in Yongkang City (Trial) " (December 13) On December 13, Zhejiang Yongkang Municipal Development and Reform Bureau issued the notice of "Guidelines for the Construction of New Energy Projects in Yongkang City (Trial) " (hereinafter referred to as the "Guidelines"). The "Guidelines" point out that the new energy storage projects are subject to filing management. Among them, the power side, the power grid side and the user side energy storage projects with a rated power of 5 trillion watts and above must first be included in the provincial development plan or annual construction plan. The project construction unit applies to the Municipal Development and Reform Bureau for filing through the online approval and supervision platform of investment projects in Zhejiang Government Service Network, and fills in the basic information of the project as required and uploads relevant materials. The document makes it clear that the fire protection requirements for the construction of new energy storage projects. For power supply side and power grid side energy storage projects, power grid enterprises should coordinate the planning and construction of supporting power grid projects in accordance with the "Development Plan" and annual plan of the Provincial Energy Bureau. The supporting power grid projects should be coordinated with the construction of new energy storage projects. For user side energy storage projects, it shall not affect the destruction of the original building fire zone, safe evacuation, and fire protection facilities. The energy storage area should be separated from other functional areas by fire protection. Among them, for new, expanded or remodeled electrochemical energy storage projects with a power of 500 kW and a capacity of 500 kWh and above, fire protection reviews should also be carried out strictly according to the following requirements.

International dynamics

 Italy allocates 320 million euros to subsidize small and medium-sized enterprises to configure photovoltaic storage equipmentOn December 5, the Italian Minister of Enterprise and Manufacturing, Adolfo Urso, signed a decree to allocate 320 million euros to support small and medium-sized enterprises to use renewable energy for their own self-use. The aim is to incentivize photovoltaic power generation, small wind power generation and energy storage systems, ensure more energy independence and have a positive impact on the environment. It is reported that the special project funds allocated from the National Recovery Plan amount to 320 million euros, of which 40% will be used in the southern regions, especially Abruzzo, Basilicata, Calabria, Campania, Molise, Apulia, Sardinia and Sicily. Another 40% will be provided to micro and small enterprises. If the fund reserve is not used up, the remaining funds will be reallocated to finance projects in medium-sized companies and other regions. Medium-sized enterprises can receive up to 30% of the subsidy, and micro and small enterprises can receive up to 40% of the subsidy. 30% of the subsidy is used for any additional electricity storage component, and 50% of the subsidy is used for advance energy diagnostics required by the measures stipulated in the planning decree.

Germany's plans to expand gas-fired power plants and subsidize hydrogen energy have run aground, and the deployment of large-scale energy storage is imperative. Germany originally planned to expand gas-fired power plants vigorously, complete a smooth transition to 100% green energy goals, and completely phase out coal power generation by 2030 eight years ahead of schedule. However, due to the political turmoil, this plan was forced to run aground. Not long ago, Germany's three-party coalition government broke down, the expansion plan of gas-fired power plants could not be passed by parliament, and energy policy progress was deadlocked. Germany is one of the largest electricity importers in Europe, and energy security has always been an important agenda in the country. As of the beginning of December, Germany's photovoltaic power generation increased by 13.5% year-on-year; electricity imports 23.60 billion kWh, up to twice the amount of exports; natural gas imports reached 2,149 Despite the rapid development of photovoltaic power generation, gas-fired power generation is still widely regarded in the German industry as a key transition plan for the withdrawal of nuclear power and the phasing out of coal. With the plan stranded, Germany is facing an increasingly severe energy crisis. At present, some voices in the German industry are inclined to turn to hydrogen power generation. But recently, due to the failure to reach an agreement with the European Union Commission on the terms, Germany's original 350 million euro hydrogen project subsidy was also forced to be cancelled. For the German power grid, further increasing the deployment of large-scale energy storage will be an important energy crisis solution. However, the German energy storage market is currently dominated by household storage, and large-scale energy storage still accounts for a small proportion of all energy storage installed capacity in Germany. As of December, Germany's total energy storage capacity was 17.2 gigawatt-hours, of which 14.5 gigawatt-hours were household energy storage, accounting for 84.3%; large-scale energy storage was 2 gigawatt-hours, accounting for 11.6%; commercial energy storage was only 697.90 trillion watt-hours, accounting for only 4%.

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